MORGAN STANLEY: These 20 Stocks Will Do Awesome For Years

Flickr / Eric Kilby
In the near-term, investors are having a tough time deciding how to position themselves with stocks near their all-time highs.

But those thinking longer-term are probably more concerned about which stocks they should be in.

Morgan Stanley just published a massive 32-page report for its "20 For 2016," a list of 20 stock picks.

"The main criterion is sustainability — of competitive advantages, business model, pricing power, cost efficiency, and growth," the analysts wrote.

"We are taking a long term view," they continued. "There was no prerequisite in our analysis that they be rated Overweight, nor specific assumptions about where we are in the economic cycle or any other valuation considerations. Our driving principle was to create a list of companies whose business models and market positions would be increasingly differentiated by 2016."

We pulled the 20 stocks and highlighted the 5 year revenue and earnings growth rates. We also included one of the many reasons why the analysts picked each stock.

Calpine

"In both Texas and the Southeast, the value of Calpine's assets is not largely driven by natural gas prices (which in turn impact the cost to produce power), but is instead driven by the increasingly tight supply-demand balance in these markets."

Costco Wholesale

Estée Lauder

AP

Ticker: EL

Revenue Growth: 7%

EPS Growth: 16%

Sector: Consumer Staples

"Estée has leverage to the attractive and high growth beauty category, outsized margin expansion potential given cost savings and superior top-line growth, a better balance sheet, higher returns, and more strategic potential than peers, in our view."

Monsanto

"Monsanto is unique in that it is the only seeds and agriculture biotechnology pure play."

Source: Morgan Stanley

14/

News Corp

Daniel Goodman / Business Insider.com

Ticker: NWSA

Revenue Growth: 5%

EPS Growth: 18%

Sector: Consumer Discretionary

"Following the spin-off by News Corp. this year of its publishing/Australian assets, we believe that the remaining company, Fox Group, is well positioned to benefit from rising global demand and monetization of content — we think these are good businesses."

Source: Morgan Stanley

15/

Philip Morris International

rjstyles on http://www.flickr.com/photos/rjstyles69/4390480902/

Ticker: PM

Revenue Growth: 4%

EPS Growth: 10%

Sector: Consumer Staples

"PM benefits from significant geographic diversification, with exposure to emerging markets' growth and developed markets' high margins."

Source: Morgan Stanley

16/

RPM International

"RPM's Consumer segment includes household brand names such as Rust-Oleum (paints & DIY products), DAP (caulking), and Varathane (wood finishes). This segment represents 33% of total company revenues, of which 90% are in the US and Canada, making RPM the second-most exposed among the peer group to a rebound in residential investment."

Source: Morgan Stanley

17/

Starbucks

"The domestic business (75% of overall profits) has seen consistent 7-10% SSS growth over the past three years and we expect it to continue at a mid-single- digit pace going forward, driven in part by the introduction of a higher-quality food menu following the acquisition of the La Boulange bakery."

Source: Morgan Stanley

18/

Symantec

Ticker: SYMC

Revenue Growth: 3%

EPS Growth: 11%

Sector: Technology

"After 19 acquisitions in the past 5 years, with limited rationalization of the acquired assets, we see significant opportunities for margin improvements ahead."

Williams Companies

"WMB offers one of the most visible volume- driven midstream growth stories over the next several years within our coverage universe, with $9 billion in organic growth capital investment over the next two years alone underpinned by aggressive moves in recent quarters to establish a beachhead in the compelling northeast market (Marcellus and Utica shales)."